Q4 2016
- Sales increase 11.1% year-over-year to US$62.9 million
- Bookings improve 13.7% year-over-year to US$62.4 million
- Adjusted EBITDA rises 24.4% year-over-year to
US$6.2 million
Fiscal 2016
- Sales increase 4.7% to US$232.6
million
- Bookings improve 7.7% to US$240.3
million
- Adjusted EBITDA surges 59.9% to US$22.0 million
- Cash position improves US$19.9
million to US$47.3 million
QUEBEC CITY, Oct. 12, 2016 /CNW Telbec/ - EXFO Inc.
(NASDAQ: EXFO) (TSX: EXF) announced today financial results for the
fourth quarter and fiscal year ended August
31, 2016.
Sales in the fourth quarter of fiscal 2016 reached US$62.9 million compared to US$60.9 million in the third quarter of 2016 and
US$56.6 million in the fourth quarter
of 2015. Annual sales increased 4.7% to US$232.6 million in fiscal 2016 from US$222.1 million in 2015.
Bookings totaled US$62.4 million
for a book-to-bill ratio of 0.99 in the fourth quarter of fiscal
2016 compared to US$59.7 million in
the third quarter of 2016 and US$54.9
million in the fourth quarter of 2015. Overall for fiscal
2016, bookings increased 7.7% to US$240.3 million for a book-to-bill ratio of
1.03 from US$223.1 million
in 2015.
Gross margin before depreciation and amortization* attained
61.6% of sales in the fourth quarter of fiscal 2016 compared to
60.8% in the third quarter of 2016 and 61.2% in the fourth quarter
of 2015. In fiscal 2016, gross margin improved to 62.6% of sales
from 61.7% in 2015.
In the fourth quarter of fiscal 2016, IFRS net earnings amounted
to US$2.3 million, or US$0.04 per diluted share, compared to net
earnings of US$0.9 million, or
US$0.02 per diluted, share in the
third quarter of 2016 and US$2.3 million, or US$0.04 per diluted share, in the fourth quarter
of 2015. IFRS net earnings in the fourth quarter of 2016 included
US$0.3 million in after-tax
amortization of intangible assets, US$0.3
million in stock-based compensation costs and a foreign
exchange loss of US$0.3 million. In
comparison, the company reported a foreign exchange gain of
US$2.4 million in the fourth quarter
of 2015.
In fiscal 2016, IFRS net earnings totaled US$8.9 million, or US$0.16 per diluted share, compared to
US$5.3 million, or US$0.09 per diluted share, in 2015. IFRS net
earnings in 2016 included US$1.1
million in after-tax amortization of intangible assets,
US$1.4 million in stock-based
compensation costs and a foreign exchange gain of US$0.2 million. In comparison, the company
reported a foreign exchange gain of US$7.2
million in fiscal 2015.
Adjusted EBITDA* totaled US$6.2
million, or 9.8% of sales, in the fourth quarter of fiscal
2016 compared to US$5.3 million,
or 8.7% of sales, in the third quarter of 2016 and US$5.0 million, or 8.8% of sales, in the fourth
quarter of 2015. In fiscal 2016, adjusted EBITDA surged 59.9% to
US$22.0 million from US$13.8 million in 2015.
Cash and short-term investments increased by US$19.9 million to US$47.3
million at the end of fiscal 2016 from US$27.4 million at the end of 2015.
"I am quite pleased with EXFO's progress in fiscal 2016 in terms
of sales, bookings and profitability, including a 60% increase in
adjusted EBITDA to US$22.0 million,
ahead of the US$20 million target we
had set at the beginning of the year," said Germain Lamonde, EXFO's Chairman, President and
CEO. "Many of the transformations implemented in 2015 started to
pay off, contributing to market-share gains in strategic areas and
delivering expected bookings and revenue growth in both our
Physical-layer and Protocol-layer product groups. Our fourth
quarter was particularly gratifying with double-digit sales,
bookings and adjusted EBITDA growth year-over-year."
"Throughout 2016, we continued redefining EXFO for ongoing
success and market-share gains by strengthening our innovation
edge, strategic position and go-to-market capabilities, while
leveraging new growth vectors and market segments," Mr. Lamonde
added. "Combined with our solid foundation in high-speed optical
testing and holistic test and systems offering, we are well
positioned to sustain profitable growth in 2017 as the pace of
network transformation is accelerating. With a heightened focus on
execution, disciplined spending and improving our gross margin, I
am confident we will increase adjusted EBITDA faster than revenue
to achieve at least US$26 million
in 2017."
Selected Financial
Information (unaudited)
(In thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2016
|
|
Q3
2016
|
|
Q4
2015
|
|
FY
2016
|
|
FY
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
sales
|
$
|
39,777
|
|
$
|
42,074
|
|
$
|
34,967
|
|
$
|
151,910
|
|
$
|
144,060
|
Protocol-layer
sales
|
|
23,445
|
|
|
19,260
|
|
|
22,419
|
|
|
83,324
|
|
|
80,591
|
Foreign exchange
losses on forward exchange contracts
|
|
(364)
|
|
|
(438)
|
|
|
(792)
|
|
|
(2,651)
|
|
|
(2,562)
|
Total
Sales
|
$
|
62,858
|
|
$
|
60,896
|
|
$
|
56,594
|
|
$
|
232,583
|
|
$
|
222,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
bookings
|
$
|
39,826
|
|
$
|
41,797
|
|
$
|
35,521
|
|
$
|
155,320
|
|
$
|
144,673
|
Protocol-layer
bookings
|
|
22,969
|
|
|
18,389
|
|
|
20,187
|
|
|
87,631
|
|
|
80,948
|
Foreign exchange
losses on forward
exchange contracts
|
|
(364)
|
|
|
(438)
|
|
|
(792)
|
|
|
(2,651)
|
|
|
(2,562)
|
Total
Bookings
|
$
|
62,431
|
|
$
|
59,748
|
|
$
|
54,916
|
|
$
|
240,300
|
|
$
|
223,059
|
Book-to-bill ratio
(Bookings/Sales)
|
|
0.99
|
|
|
0.98
|
|
|
0.97
|
|
|
1.03
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin before
depreciation and amortization*
|
$
|
38,713
|
|
$
|
37,016
|
|
$
|
34,619
|
|
$
|
145,517
|
|
$
|
137,050
|
|
|
61.6%
|
|
|
60.8%
|
|
|
61.2%
|
|
|
62.6%
|
|
|
61.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
2,252
|
|
$
|
919
|
|
$
|
2,323
|
|
$
|
8,900
|
|
$
|
5,298
|
|
Amortization of
intangible assets
|
$
|
292
|
|
$
|
294
|
|
$
|
322
|
|
$
|
1,172
|
|
$
|
2,883
|
|
Stock-based
compensation costs
|
$
|
302
|
|
$
|
386
|
|
$
|
133
|
|
$
|
1,378
|
|
$
|
1,295
|
|
Restructuring
charges
|
$
|
−
|
|
$
|
−
|
|
$
|
1,637
|
|
$
|
−
|
|
$
|
1,637
|
|
Net income tax effect
of the
above items
|
$
|
(31)
|
|
$
|
(31)
|
|
$
|
(371)
|
|
$
|
(120)
|
|
$
|
(531)
|
|
Foreign exchange gain
(loss)
|
$
|
(293)
|
|
$
|
(957)
|
|
$
|
2,425
|
|
$
|
161
|
|
$
|
7,212
|
|
Adjusted
EBITDA*
|
$
|
6,172
|
|
$
|
5,301
|
|
$
|
4,962
|
|
$
|
22,039
|
|
$
|
13,779
|
Operating Expenses
Selling and administrative expenses
totaled US$21.6 million, or 34.3% of
sales, in the fourth quarter of fiscal 2016 compared to
US$20.8 million, or 34.2% of sales,
in the third quarter of 2016 and US$20.5
million, or 36.3% of sales, in the fourth quarter of 2015.
In fiscal 2016, selling and administrative expenses amounted to
US$82.2 million, or 35.3% of sales,
compared to US$82.2 million, or 37.0%
of sales, in 2015.
Net R&D expenses amounted to US$11.3
million, or 18.0% of sales, in the fourth quarter of fiscal
2016 compared to US$11.3 million, or
18.6% of sales, in the third quarter of 2016 and US$10.9 million, or 19.3% of sales, in the fourth
quarter of 2015. In fiscal 2016, net R&D expenses decreased to
US$42.7 million, or 18.4% of sales,
from US$44.0 million, or 19.8%
of sales, in 2015.
Fiscal 2016 Highlights
- Sales. Total sales increased 4.7% to US$232.6 million in fiscal 2016 largely due to
EXFO's leadership in portable optical testing and a 100G investment
cycle, especially in the United
States. Sales of Physical-layer solutions (optical and
copper access) increased 5.4% year-over-year, while sales of
Protocol-layer solutions (transport, datacom, service assurance,
analytics and wireless products) improved 3.4%.
Annual sales in the Americas and Asia-Pacific regions increased by 6.7% and
5.6%, respectively, while sales in Europe, Middle
East and Africa (EMEA) were
relatively stable.
EXFO's largest customer accounted for 7.1% of sales in fiscal 2016,
while the company's top-three customers represented 15.6%. In
comparison, EXFO's largest customer accounted for 7.1% of sales in
2015, while the company's top-three customers represented
14.4%.
- Profitability. EXFO generated adjusted EBITDA of
US$22.0 million, or 9.5% of sales, in
fiscal 2016 compared to US$13.8
million, or 6.2% of sales, in 2015. The company also
delivered US$24.4 million in cash
flows from operating activities in 2016.
- Innovation. EXFO launched 15 new products or
major enhancements in fiscal 2016. Key new product introductions
included TestFlow, a unique cloud-based, field test automation
solution simplifying and accelerating complex, labor-intensive
deployment activities for home-broadband and wireless radio access
networks (RAN); LTB-8 platform, a multi-module test and
software-sharing automation suite accelerating high-speed optical
testing in lab and manufacturing environments; a whole new family
of OTDRs (a segment in which EXFO dominates), raising industry
standards for technical specifications and time savings in
characterizing optical networks; iSAM, an intelligent service
activation software bringing speed and simplicity to testing
Ethernet services; MaxTester-940 Fiber Certifier OLTS (optical loss
test set) for data center and enterprise markets; and the telecom
industry's first G.fast handheld test set for the roll out of
ultra-broadband services on copper links.
Business Outlook
EXFO forecasts sales between
US$59.0 million and US$64.0 million
for the first quarter of fiscal 2017, while IFRS net results are
expected to range between a loss of US$0.01 per share and earnings of US$0.03 per share.
IFRS net results include US$0.01
per share in after-tax amortization of intangible assets and
stock-based compensation costs.
This guidance was established by management based on existing
backlog as of the date of this press release, seasonality, expected
bookings for the remaining of the quarter, as well as exchange
rates as of the day of this press release.
For fiscal 2017, EXFO is targeting double-digit growth in
adjusted EBITDA to least US$26
million.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review fourth quarter and year-end financial
results for fiscal 2016. To listen to the conference call and
participate in the question period via telephone, dial
1-704-288-0432. Please take note the following conference ID
number will be required: 78994192. Germain
Lamonde, Chairman, President and CEO, and Pierre Plamondon, CPA, CA, Vice-President of
Finance and Chief Financial Officer, will participate in the call.
An audio replay of the conference call will be available two hours
after the event until 11:59 p.m. on
October 19, 2016. The replay number
is 1-855-859-2056 and the conference ID number is 78994192.
The audio Webcast and replay of the conference call will also be
available on EXFO's Website at www.EXFO.com, under the
Investors section.
About EXFO
EXFO provides communications service
providers (CSPs) with test orchestration and 3D analytics solutions
to ensure the smooth deployment, maintenance and management of
next-generation, physical, virtual, fixed and mobile networks. The
company has also forged strong relationships with network equipment
manufacturers (NEMs) to develop deep expertise that migrates from
the lab to the field and beyond. EXFO's key differentiation comes
from combining intelligent, automated and cloud-based test and
monitoring solutions with real-time analytics to deliver unmatched
end-to-end visibility and assurance—from a network, services and
end-user level. EXFO is no. 1 in portable optical testing and
boasts the largest active service assurance deployment worldwide.
For more information, visit www.EXFO.com and follow us on the EXFO
Blog.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, and we intend that such
forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than
historical information or statements of current condition.
Words such as may, expect, believe, plan, anticipate, intend,
could, estimate, continue, or similar expressions or the
negative of such expressions are intended to identify
forward-looking statements. In addition, any statement that
refers to expectations, projections or other characterizations of
future events and circumstances are considered forward-looking
statements. They are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements due to various
factors including, but not limited to, macroeconomic uncertainty as
well as capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures with anticipated levels of business and our ability
to manage inventory levels with market demand); future economic,
competitive, financial and market conditions; consolidation in the
global telecommunications test and service assurance industry and
increased competition among vendors; capacity to adapt our future
product offering to future technological changes; limited
visibility with regards to timing and nature of customer
orders; longer sales cycles for complex systems involving
customers' acceptances delaying revenue recognition; fluctuating
exchange rates; concentration of sales; timely release and market
acceptance of our new products and other upcoming products; our
ability to successfully expand international operations; our
ability to successfully integrate businesses that we acquire; and
the retention of key technical and management personnel.
Assumptions relating to the foregoing involve judgments and risks,
all of which are difficult or impossible to predict and many
of which are beyond our control. Other risk factors that may affect
our future performance and operations are detailed in our Annual
Report, on Form 20-F, and our other filings with the U.S.
Securities and Exchange Commission and the Canadian securities
commissions. We believe that the expectations reflected in the
forward-looking statements are reasonable based on information
currently available to us, but we cannot assure that the
expectations will prove to have been correct. Accordingly, you
should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
document. Unless required by law or applicable regulations, we
undertake no obligation to revise or update any of them
to reflect events or circumstances that occur after the date of
this document.
*Non-IFRS Measures
EXFO provides non-IFRS measures
(constant currency data, gross margin before depreciation and
amortization and adjusted EBITDA) as supplemental information
regarding its operational performance. The company uses these
measures for the purpose of evaluating historical and prospective
financial performance, as well as its performance relative to
competitors. These measures also help the company to plan and
forecast future periods as well as to make operational and
strategic decisions. EXFO believes that providing this information,
in addition to IFRS measures, allows investors to see the company's
results through the eyes of management, and to better understand
its historical and future financial performance.
The presentation of this additional information is not prepared
in accordance with IFRS. Therefore, the information may not
necessarily be comparable to that of other companies and should be
considered as a supplement to, not a substitute for,
the corresponding measures calculated in accordance with IFRS.
Constant currency data represents data before foreign currency
impact. Data for the current period is translated using foreign
exchange rates of the corresponding period from the preceding
year.
Gross margin before depreciation and amortization represents
sales less cost of sales, excluding depreciation and
amortization.
Adjusted EBITDA represents net earnings before interest, income
taxes, depreciation and amortization, restructuring charges,
stock-based compensation costs and foreign exchange gain or
loss.
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings in thousands
of US dollars:
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2016
|
|
Q3
2016
|
|
Q4
2015
|
FY
2016
|
|
FY
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
|
$
|
2,252
|
|
$
|
919
|
|
$
|
2,323
|
|
$
|
8,900
|
|
$
|
5,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
957
|
|
|
958
|
|
|
1,171
|
|
|
3,814
|
|
|
4,835
|
Amortization of
intangible assets
|
|
|
292
|
|
|
294
|
|
|
322
|
|
|
1,172
|
|
|
2,883
|
Interest and other
(income) expenses
|
|
|
(112)
|
|
|
(309)
|
|
|
61
|
|
|
(828)
|
|
|
(155)
|
Income
taxes
|
|
|
2,188
|
|
|
2,096
|
|
|
1,740
|
|
|
7,764
|
|
|
5,198
|
Restructuring
charges
|
|
|
–
|
|
|
–
|
|
|
1,637
|
|
|
–
|
|
|
1,637
|
Stock-based
compensation costs
|
|
|
302
|
|
|
386
|
|
|
133
|
|
|
1,378
|
|
|
1,295
|
Foreign exchange
(gain) loss
|
|
|
293
|
|
|
957
|
|
|
(2,425)
|
|
|
(161)
|
|
|
(7,212)
|
Adjusted EBITDA for
the period
|
|
$
|
6,172
|
|
$
|
5,301
|
|
$
|
4,962
|
|
$
|
22,039
|
|
$
|
13,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
|
9.8%
|
|
|
8.7%
|
|
|
8.8%
|
|
|
9.5%
|
|
|
6.2%
|
EXFO
Inc. Condensed Unaudited Interim Consolidated Balance
Sheets
(in thousands of US
dollars)
|
|
|
|
|
|
As at August
31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
43,208
|
|
$
|
25,864
|
Short-term
investments
|
|
4,087
|
|
|
1,487
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
45,076
|
|
|
48,068
|
|
Other
|
|
2,474
|
|
|
2,384
|
Income taxes and tax
credits recoverable
|
|
4,208
|
|
|
3,855
|
Inventories
|
|
33,004
|
|
|
27,951
|
Prepaid
expenses
|
|
3,099
|
|
|
2,801
|
|
|
135,156
|
|
|
112,410
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
34,594
|
|
|
35,625
|
Property, plant
and equipment
|
|
35,978
|
|
|
35,695
|
Intangible
assets
|
|
3,391
|
|
|
4,096
|
Goodwill
|
|
21,928
|
|
|
21,860
|
Deferred income
tax assets
|
|
7,681
|
|
|
8,900
|
Other
assets
|
|
589
|
|
|
416
|
|
|
|
|
|
|
|
$
|
239,317
|
|
$
|
219,002
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
37,174
|
|
$
|
34,126
|
Provisions
|
|
299
|
|
|
427
|
Income taxes
payable
|
|
971
|
|
|
779
|
Deferred
revenue
|
|
9,486
|
|
|
7,647
|
|
|
47,930
|
|
|
42,979
|
|
|
|
|
|
|
Deferred
revenue
|
|
5,530
|
|
|
2,957
|
Deferred income
tax liabilities
|
|
2,857
|
|
|
1,524
|
Other
liabilities
|
|
75
|
|
|
791
|
|
|
56,392
|
|
|
48,251
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
85,516
|
|
|
86,045
|
Contributed
surplus
|
|
18,150
|
|
|
17,778
|
Retained
earnings
|
|
127,833
|
|
|
118,933
|
Accumulated other
comprehensive loss
|
|
(48,574)
|
|
|
(52,005)
|
|
|
182,925
|
|
|
170,751
|
|
|
|
|
|
|
|
$
|
239,317
|
|
$
|
219,002
|
EXFO
Inc. Condensed Unaudited Interim Consolidated Statements
of Earnings
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
Three
months ended
August 31, 2016
|
|
Twelve
months ended
August 31, 2016
|
|
Three
months ended
August 31, 2015
|
|
Twelve
months ended
August 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
62,858
|
|
$
|
232,583
|
|
$
|
56,594
|
|
$
|
222,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1,2)
|
|
|
24,145
|
|
|
87,066
|
|
|
21,975
|
|
|
85,039
|
Selling and
administrative (2)
|
|
|
21,554
|
|
|
82,169
|
|
|
20,511
|
|
|
82,200
|
Net research and
development (2)
|
|
|
11,289
|
|
|
42,687
|
|
|
10,916
|
|
|
44,003
|
Depreciation of
property, plant and equipment
|
|
|
957
|
|
|
3,814
|
|
|
1,171
|
|
|
4,835
|
Amortization of
intangible assets
|
|
|
292
|
|
|
1,172
|
|
|
322
|
|
|
2,883
|
Interest and other
(income) expense
|
|
|
(112)
|
|
|
(828)
|
|
|
61
|
|
|
(155)
|
Foreign exchange
(gain) loss
|
|
|
293
|
|
|
(161)
|
|
|
(2,425)
|
|
|
(7,212)
|
Earnings before
income taxes
|
|
|
4,440
|
|
|
16,664
|
|
|
4,063
|
|
|
10,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
2,188
|
|
|
7,764
|
|
|
1,740
|
|
|
5,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
2,252
|
|
$
|
8,900
|
|
$
|
2,323
|
|
$
|
5,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
$
|
0.04
|
|
$
|
0.17
|
|
$
|
0.04
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
earnings per share
|
|
$
|
0.04
|
|
$
|
0.16
|
|
$
|
0.04
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
53,769
|
|
|
53,863
|
|
|
53,806
|
|
|
56,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
54,709
|
|
|
54,669
|
|
|
54,473
|
|
|
57,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The cost of sales is
exclusive of depreciation and amortization, shown
separately.
|
(2)
|
Restructuring charges
included in:
|
|
Cost of
sales
|
|
$
|
‒
|
|
$
|
‒
|
|
$
|
290
|
|
$
|
290
|
|
Selling and
administrative
|
|
|
‒
|
|
|
‒
|
|
|
586
|
|
|
586
|
|
Net research and
development
|
|
|
‒
|
|
|
‒
|
|
|
761
|
|
|
761
|
|
|
|
$
|
‒
|
|
$
|
‒
|
|
$
|
1,637
|
|
$
|
1,637
|
EXFO
Inc. Condensed Unaudited Interim Consolidated Statements
of Comprehensive Income (Loss)
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
Three
months
ended
August 31,
2016
|
|
Twelve
months
ended
August 31,
2016
|
|
Three
months
ended
August 31,
2015
|
|
Twelve
months
ended
August 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
2,252
|
|
$
|
8,900
|
|
$
|
2,323
|
|
$
|
5,298
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(68)
|
|
|
707
|
|
|
(9,676)
|
|
|
(39,175)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
|
37
|
|
|
862
|
|
|
(1,419)
|
|
|
(5,583)
|
|
Reclassification of
realized gains/losses on forward exchange contracts
in net earnings
|
|
|
414
|
|
|
2,797
|
|
|
669
|
|
|
2,107
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
|
(111)
|
|
|
(935)
|
|
|
180
|
|
|
905
|
Other comprehensive
income (loss)
|
|
|
272
|
|
|
3,431
|
|
|
(10,246)
|
|
|
(41,746)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
$
|
2,524
|
|
$
|
12,331
|
|
$
|
(7,923)
|
|
$
|
(36,448)
|
EXFO
Inc. Condensed Unaudited Interim Consolidated Statements
of Changes in Shareholders' Equity
(in thousands of US
dollars)
|
|
|
|
|
|
Twelve months
ended August 31, 2015
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive loss
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2014
|
|
$
|
111,491
|
|
$
|
16,503
|
|
$
|
113,635
|
|
$
|
(10,259)
|
|
$
|
231,370
|
Redemption of share
capital
|
|
|
(26,827)
|
|
|
1,333
|
|
|
–
|
|
|
–
|
|
|
(25,494)
|
Reclassification of
stock-based compensation costs
|
|
|
1,381
|
|
|
(1,381)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,323
|
|
|
–
|
|
|
–
|
|
|
1,323
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
5,298
|
|
|
–
|
|
|
5,298
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(39,175)
|
|
|
(39,175)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $905
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(2,571)
|
|
|
(2,571)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,448)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2015
|
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
118,933
|
|
$
|
(52,005)
|
|
$
|
170,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended August 31, 2016
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2015
|
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
118,933
|
|
$
|
(52,005)
|
|
$
|
170,751
|
Redemption of share
capital
|
|
|
(1,768)
|
|
|
217
|
|
|
–
|
|
|
–
|
|
|
(1,551)
|
Reclassification of
stock-based compensation costs
|
|
|
1,239
|
|
|
(1,239)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,394
|
|
|
–
|
|
|
–
|
|
|
1,394
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
8,900
|
|
|
–
|
|
|
8,900
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
707
|
|
|
707
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $935
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,724
|
|
|
2,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2016
|
|
$
|
85,516
|
|
$
|
18,150
|
|
$
|
127,833
|
|
$
|
(48,574)
|
|
$
|
182,925
|
EXFO
Inc. Condensed Unaudited Interim Consolidated Statements
of Cash Flows
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
Three
months ended August 31, 2016
|
|
Twelve
months ended August 31, 2016
|
|
Three
months ended August 31, 2015
|
|
Twelve
months ended August 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
|
$
|
2,252
|
|
$
|
8,900
|
|
$
|
2,323
|
|
$
|
5,298
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
302
|
|
|
1,378
|
|
|
133
|
|
|
1,295
|
|
Depreciation and
amortization
|
|
|
1,249
|
|
|
4,986
|
|
|
1,493
|
|
|
7,718
|
|
Deferred
revenue
|
|
|
(638)
|
|
|
4,238
|
|
|
(962)
|
|
|
396
|
|
Deferred income
taxes
|
|
|
293
|
|
|
1,578
|
|
|
366
|
|
|
565
|
|
Changes in foreign
exchange gain/loss
|
|
|
1
|
|
|
(332)
|
|
|
(967)
|
|
|
(3,842)
|
|
|
|
3,459
|
|
|
20,748
|
|
|
2,386
|
|
|
11,430
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(712)
|
|
|
2,682
|
|
|
(3,017)
|
|
|
(10,828)
|
|
Income taxes and tax
credits
|
|
|
307
|
|
|
939
|
|
|
(98)
|
|
|
(2,062)
|
|
Inventories
|
|
|
1,914
|
|
|
(4,713)
|
|
|
1,803
|
|
|
820
|
|
Prepaid
expenses
|
|
|
138
|
|
|
(280)
|
|
|
(107)
|
|
|
(982)
|
|
Other
assets
|
|
|
(33)
|
|
|
170
|
|
|
32
|
|
|
61
|
|
Accounts payable,
accrued liabilities and provisions
|
|
|
(1,524)
|
|
|
4,882
|
|
|
(862)
|
|
|
8,132
|
|
Other
liabilities
|
|
|
(6)
|
|
|
(65)
|
|
|
(25)
|
|
|
(87)
|
|
|
|
3,543
|
|
|
24,363
|
|
|
112
|
|
|
6,484
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(416)
|
|
|
(3,546)
|
|
|
(558)
|
|
|
(20,067)
|
Proceeds from
disposal and maturity of short-term investments
|
|
|
372
|
|
|
873
|
|
|
‒
|
|
|
23,685
|
Additions to capital
assets
|
|
|
(982)
|
|
|
(4,356)
|
|
|
(1,308)
|
|
|
(5,933)
|
|
|
|
(1,026)
|
|
|
(7,029)
|
|
|
(1,866)
|
|
|
(2,315)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
|
(468)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Redemption of share
capital
|
|
|
(1,149)
|
|
|
(1,551)
|
|
|
(320)
|
|
|
(25,494)
|
|
|
|
(1,617)
|
|
|
(1,551)
|
|
|
(320)
|
|
|
(25,494)
|
Effect of foreign
exchange rate changes on cash
|
|
|
35
|
|
|
1,561
|
|
|
(957)
|
|
|
(6,932)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
935
|
|
|
17,344
|
|
|
(3,031)
|
|
|
(28,257)
|
Cash – Beginning
of the period
|
|
|
42,273
|
|
|
25,864
|
|
|
28,895
|
|
|
54,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash – End of the
period
|
|
$
|
43,208
|
|
$
|
43,208
|
|
$
|
25,864
|
|
$
|
25,864
|
EXFO-F
SOURCE EXFO inc.